New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-12-09
vrv rcOyOuJC SCIENCE.

Among the MANY wise savings IN Mr. Blaine :
review of the Message is his plea for an eco
nomic science dislinctivcly American. "Thc
magnitude Of the Union" he remarks, "and
the immensely Of It's internal trade require Il
new political economy. The trcatISes written
for European States 10 not grasp our pcclll n
situation" These arc the tlcai'scs which IN
the main have been cXpOunGcd by hcc-iiadc
professors in American colleges. For twenty
five years university students have been taught
that the country was pursuing rulnOus ana
scnsclcss economic policy. If any one doubted
this. there were the English textbooks and
trcatiscs to prove it, American youth has been
trained in these colleges to dcSpiSc American
legislators who were responsible for the main
tcnancc Of the tariff system and 10 believe
that consumers were impoverished with war
taxation and that the resources Of the country
were exhausted by protection. Meanwhile.
the forecasts Of ruin have not been fulfilled.
American prospcrity-thc industrial growth
and dcbt-paying resources of the Naton-havc
become the marvel Of the world. The new
facts Of American experience have practically
nullifcd the logic Of the frcc-tradc trcatiScS.
The European theories have been tried and
found wanting when applied to the conditions
OF American progress
Lord Derby "a fortnight ago made in Liver
pool a significant speech on the future of ma
tional bondholdcrs. He computed the aggrc-
gate indebtedness Of the European States as
$40 900 100000, with an annual interest
charge Of SSO0,O 100000 viii this enormous
Indebtedness ever be paid? Lord Derby cyi-
dcnuly apprchcnds that while England may
eventually iquidatc its debt. the Continental
Powers never viii do il. The descendants Of
the present creditors Will be lucky, he thinks
if they get the interest; for the principal Will
never be paid and very likely the debts may
be rcoudiatcd This is The calm Judgment Of
one of the most cautious Of English statesmen.
The bulk Of that enormous indebtedness OF
$4,000 100000 can never be paid and very
probably viii be rcpudiatcd. Certainly there
has been no reduction Of the national debts of
Europe during the century, but rather a steady
advance toward the reputation point. Con
trast with these facts of European finance the
wonderful achievements made by the United
States in scaling down It's debt nearly one
half The Nation has to-day the proud dis
tinctOn Of being the only ono on the face OF the
earth that actually pays its dobts; yet TINS
rcuntation, SO unique In ChIistendOm, has been
won under that "ruinous and senscIrss' system
of protection condemned for twenty-five years
by The English textbooks and the ircc-tladc
professors
Mr.. Blaine is undoubtedly right. America
by virtue of its extent Of territory, It's cnor-
nous Internal trade and IFS incXhausnblc IN
dustrial resources, occupies unique position
among the nations. While linanclcrs IN other
capitals arc racking their brains to discover
new sources of revenue or cXpcdlcnls Tor
bridging over Deficiencies in annual budgets
the only ground for anxiety or embarrassment
in Washington is an unmanagcaJlc surplus.
The Treasury is full and Overlooking, whL,,
wonder of wonders the country prospcrs ana
the people do not even know that they are
taxed. A new economic science is needed to
explain this facts of American prosperity. The
European trcatises are hopclcssly discrcditcd